Perdue Farms Agrees to $4 Million Settlement for Child Labor Violations

In January 2025, Perdue Farms agreed to pay $4 million in restitution following a U.S. Department of Labor (DOL) investigation that uncovered child labor violations at its Accomac, Virginia, poultry processing facility. The investigation revealed that, between 2020 and 2023, Perdue Farms and staffing agency Staff Management Solutions LLC (SMX) employed minors in hazardous roles, including deboning chicken using electric knives and operating heat-sealing presses. Additionally, these minors worked beyond legally permitted hours during school weeks, violating the Fair Labor Standards Act (FLSA).

As part of the settlement, Perdue Farms will pay $4 million in restitution to the affected minors and organizations advocating against child labor. The company also committed to implementing enhanced compliance measures to prevent future violations. SMX agreed to pay a $125,000 civil penalty and was permanently enjoined from future child labor violations in the meat processing industry.

Perdue Farms fully cooperated with the DOL's investigation. The company stated that the investigation did not identify any current underage workers at their facilities. While Perdue disagreed with the DOL's findings of liability, they recognized that a prolonged dispute would not address the child labor crisis. Consequently, Perdue established a $2 million fund for the benefit of impacted minors.

This case is part of a broader trend of increasing child labor violations in the United States. In fiscal year 2024, the DOL concluded 736 investigations that found child labor violations, involving 4,030 minors employed in violation of labor laws, assessing over $15.1 million in penalties. This represents a significant increase from previous years, highlighting a growing concern over the exploitation of vulnerable populations, particularly unaccompanied migrant children.

The Perdue Farms case is not isolated. Other companies in the meat processing industry have faced similar allegations. For instance, in January 2025, the DOL reached an agreement with JBS USA, where the company agreed to contribute $4 million to aid those impacted by illegal child labor practices. This followed investigations that found third-party contractors employed underage workers in hazardous conditions at JBS facilities.

The increase in child labor violations raises significant concerns about the exploitation of vulnerable populations, particularly unaccompanied migrant children. The DOL has found that children as young as 11 to 13 years old are being employed for long hours, sometimes operating dangerous equipment and working in prohibited occupations.

The Perdue Farms settlement serves as a critical reminder of the ongoing challenges in eradicating child labor in the United States. It underscores the need for stringent compliance measures, corporate responsibility, and robust enforcement of labor laws to protect vulnerable populations.